Stock Monitor: Cotiviti Holdings Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 27, 2018 / Active-Investors.com has just released a free earnings report on Premier, Inc. (NASDAQ: PINC). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PINC. The Company reported its second quarter fiscal 2018 operating and financial results on February 05, 2018. The health care data services Company surpassed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
Active-Investors.com is currently working on the research report for Cotiviti Holdings, Inc. (NYSE: COTV), which also belongs to the Technology sector as the Company Premier. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Premier most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the second quarter ended December 31, 2017, Premier generated net revenues of $411.4 million, reflecting an increase of 15% from $358.5 million in Q2 FY17. The Company's revenue numbers exceeded analysts' estimates by $18.54 million.
Premier's net income was $19.77 million in Q2 FY18 compared to $246.2 million in Q2 FY17. In accordance with GAAP, the Company's net income in Q2 FY18 and Q2 FY17 included non-cash adjustments of $317.9 million and $335.3 million, respectively, to reflect the change in the redemption value of limited partners' Class B common unit ownership at the end of each period. After these non-cash adjustments, Premier's net income attributable to stockholders was $0.50 per share compared to $0.46 per share in the reported quarter.
During Q2 FY18, Premier's non-GAAP adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 9% to $133.5 million from $122.0 million in Q2 FY17. The Company's adjusted EBITDA growth was primarily driven by growth in net administrative fee revenues, including contributions related to the Innovatix and Essensa acquisition, net of the reduction in equity in net income of unconsolidated affiliates, due to acquiring the remaining 50% of Innovatix, along with an increase in product revenues.
Premier's GAAP net loss per diluted share was $1.66 in Q2 FY18 compared to a diluted net income per share of $1.50 in Q2 FY17. The Company's non-GAAP net income increased 7% to $70.0 million from $65.2 million in the year earlier same quarter. The Company's adjusted fully distributed EPS increased to $0.50 from $0.46 in Q2 FY17.
During Q2 FY18, Premier's Supply Chain Services segment generated net revenues of $324.9 million, reflecting an increase of 19% from $272.7 million in Q2 FY17, driven by growth in the Company's group purchasing organization (GPO) and products businesses. GPO net administrative fees revenues grew 23% to $159.3 million on a y-o-y basis, primarily driven by contributions from the Innovatix and Essensa businesses, which were acquired in December 2016. The segment's Product revenues increased 14% to $162.1 million in Q2 FY18 from $142.4 million in Q2 FY17, attributable to a double-digit growth from both the integrated pharmacy and direct sourcing businesses.
The Supply Chain Services segment's adjusted EBITDA increased 11% to $132.0 million in Q2 FY18 from $119.0 million in Q2 FY17. The increase largely reflects growth in net administrative fees revenues.
During Q2 FY18, Premier's Performance Services segment generated net revenues of $86.5 million, representing a 1% increase from $85.9 million in Q2 FY17, primarily due to a growth in the Company's informatics and technology services business, primarily related to cost management solutions and a growth in ambulatory quality solutions.
The Performance Services segment's adjusted EBITDA fell 2% to $27.9 million in Q2 FY18 from $28.6 million in Q2 FY17. The growth was impacted by an increase in cost of sales, primarily related to an increase in staffing and costs to support growth and performance-based engagements, and was impacted on a comparable basis due to higher revenue recognition from performance-based engagements in the prior year.
Cash Flows and Liquidity
Premier's cash provided by operating activities was $206.5 million in H1 FY18 compared to $138.4 million in H1 FY17. The increase in cash flow from operations was primarily driven by an increase in net administrative fees, as well as decreased outflows related to working capital needs. At December 31, 2017, the Company's cash and cash equivalents totaled $163.0 million compared to $156.7 million at June 30, 2017.
Through December 31, 2017, Premier repurchased approximately 2.6 million shares of Class A common stock for $74.7 million. The repurchases took place under the Company's ongoing $200.0 million stock repurchase program, which was announced on October 31, 2017, which authorizes shares to be repurchased through June 30, 2018.
The Company's non-GAAP free cash flow was $122.2 million in H1 FY18 compared to $59.4 million in H1 FY17.
For the full fiscal year 2018, Premier is projecting non-GAAP adjusted fully distributed EPS to increase to $2.24 - $2.37.
Stock Performance Snapshot
February 26, 2018 - At Monday's closing bell, Premier's stock was slightly up 0.31%, ending the trading session at $32.56.
Volume traded for the day: 713.86 thousand shares.
Stock performance in the previous three-month period – up 14.25%; and past twelve-month period – up 3.89%; and year-to-date – up 11.55%
After yesterday's close, Premier's market cap was at $4.37 billion.
The stock is part of the Technology sector, categorized under the Healthcare Information Services industry. This sector was up 1.2% at the end of the session.
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